Alcan Inc. Reaches Agreement in Principle for the Sale of Its Vlissingen Smelter to Klesch & Company Limited
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Press release date: May 31, 2007
PARIS, May 31: Alcan announced today that it has reached an agreement in principle with UK-based Klesch & Company Limited (Klesch) regarding the sale of its Vlissingen smelter in the Netherlands. Alcan owns 85% of the smelter and Hunter Douglas, which holds the remaining 15% interest, has confirmed its intention to sell its interest to Klesch. Terms of the agreement were not disclosed.
"Since October 2006 we have been studying all alternatives for our site in Vlissingen. Klesch is in a good position to offer new and sustainable solutions, and I am glad that we have found a path forward to ensure a future for the plant," said Michel Jacques, President and CEO, Alcan Primary Metal Group. "This transaction clearly demonstrates Alcan's ongoing commitment to value-based portfolio optimization and is aligned with our business strategy and target of improving Alcan's competitive position on the cost curve," he added.
The final agreement is expected to be completed following the conclusion of the consultation process with employee representatives in the Netherlands and France. The transaction is anticipated to close in the summer of 2007.
The intended sale would include a commercial agreement that would ensure ongoing billet and sheet ingot supply to Alcan's engineered product plants and to Hunter Douglas as well as to third party customers.
Klesch & Company Limited is a private equity firm that owns a variety of businesses. In recent years, Klesch has completed several significant transactions; namely, Transamerica Maritime Containers (known as TAL International Group) from Aegon N.V. group purchased for US$1.2 billion, as well as eKabel Hessen from Deutsche Telekom for EUR1.2 billion.
The Vlissingen aluminum plant employs approximately 700 people and has a smelting production capacity of 200,000 tonnes, with a turnover of approximately US$ 600 million in 2006. The site primarily manufactures aluminum billet for the European engineered products market.
Alcan Inc. (NYSE, TSX: AL) is a leading global materials company, delivering high quality products and services worldwide. With world-class technology and operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminium fabrication, engineered solutions as well as flexible and specialty packaging today's Alcan is well positioned to meet and exceed its customers' needs. Alcan is represented by 68,000 employees, including its joint ventures, in 61 countries and regions, and posted revenues of US$23.6 billion in 2006. The Company has featured on the Dow Jones Sustainability World Index consecutively since 2003. For more information, please visit: www.alcan.com.
Source: Alcan Inc.
Media contact: Chrystèle Ivins, Tel.: +33-1-56-28-2418, firstname.lastname@example.org; Anik Michaud, Tel.: +1-514-848-8151, media.relations@ alcan.com; Investor contact: Ulf Quellmann, Tel.: +1-514-848-8368, email@example.com